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Reduction in IEEPA – India
Effective February 7, 2026, the United States is lifting the additional 25% IEEPA (International Emergency Economic Powers Act) tariffs imposed on Indian goods related to Russian oil imports. While 50% cumulative tariffs were previously in place, a new interim framework reduces the reciprocal tariff rate to 18% on specific sectors, following India’s commitment to stop Russian oil imports and strengthen defence cooperation.
Key Changes to IEEPA Tariffs on India (as of Feb 7, 2026):
- Removal of Extra 25% Tariff:Â The additional 25% tariff (Executive Order 14329) applied in August 2025 due to Russian oil imports is removed.
- Reduced Reciprocal Rate: The overall reciprocal tariff rate may drop further to 18% for many products, including textiles, leather, plastics, and chemicals, according to reports. This is yet to be finalised.
- Context:Â This change ends the 50% total rate (25% reciprocal + 25% penalty) enforced in late 2025, which covered goods like apparel and machinery.
This shift is part of an interim trade agreement between the US and India, with further tariff adjustments possible based on the finalization of the deal.
